By Steve Gelsi
Energy stocks hammered out a gain in early action Thursday
despite lower oil prices, as Noble Corp. (NE) and Ensco
International Inc. (ESV) invigorated the oil service sector with
stronger-than-expected earnings.
Occidental Petroleum Corp. (OXY) weighed in with a positive
profit surprise as well, with shares of the oil and natural gas
producer contributing to gains in the sector.
The NYSE Arca Oil Index rose 1.8% to 953 points. The NYSE Arca
Natural Gas Index rose 2% to 442. The Philadelphia Oil Service
Index rose 2.3% 170.
Ensco International rose 1.6% to $39.04. The company said
second-quarter net income fell to $197.9 million, or $1.41 a share,
from $293.5 million, or $2.05 a share in the year-ago period.
Earnings from continuing operations fell to $1.59 a share from
$1.98 a share.
Revenue at the Dallas based oil service firm dropped to $511.6
million from $609.4 million. Wall Street analysts expected earnings
of $1.46 a share and revenue of $512.6 million, according to a
survey by FactSet Research.
"To further address the weakness in the premium jackup market,
we are taking additional actions to reduce costs and align our
fleet with the challenging market conditions," Ensco said.
Noble Corp. rose 3.4% to $33 after posting an increase in
second-quarter net income.
Diamond Offshore Drilling Inc. (DO) rose 1% to $88.90 after
posting stronger-than-expected earnings.
Crude futures subtracted 52 cents to $64.20.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com